Everyone talks about the importance of getting a good education all the way down to the tertiary level. Unfortunately, a very high price tag is attached to this quality college education. Universities come with exorbitant tuition fees, coupled with expensive living expenses. As a result, most college students end up with a big student loan attached to their names on the day of their graduation.
This debt may be an investment, but it still represents a burden. In order to fully enjoy post graduation and enjoy that first pay check, it is critical to get out of student debt ASAP. How can you afford to pay back your student loan expenses after graduation? Read on below for some tips and tricks.
Apply for a Student a Scholarship, a Grant, or Financial Aid
To make sure that you can pay off your loan fast, then you have to start by borrowing little. The less you borrow, the faster you can pay it off. To do this, then apply for financial aid, a scholarship, or a student grant. Financial assistance and the corresponding discounts are often extended by the schools to deserving students.
On top of that, applying for scholarships and grants being given by different organizations is crucial to making it much easier for you to pay tuition. Some scholarships and grants even come with a living stipend to help you with your daily essentials while in school.
Apply to all the grants, scholarships, and financial aid programs you can think of, so you can keep your student loan low. Keep in mind that even students that have less than stellar grades can apply, too. The worst that anyone can really do is to say no.
Find a Part-Time Job
The beauty of going to college is that you get to tailor your schedule the way you like it. Be sure to leave pockets of time so you can engage in part-time work. There are many opportunities out there from being a student assistant in campus, working retail, babysitting, waitressing, online work, and more.
On top of that, don’t waste your summer breaks and continue to augment your income during school days off, too. Working means earning money, which is one of the ways that you can save. Just be sure to stay committed to saving, and not merely blowing off your paycheck in shopping. By getting a part-time job, you can build a small nest egg to help you pay off those student loans.
Work for a Company with Loan Repayment Assistance
Many companies are now providing an employee benefit that is called a student loan repayment assistance program. This is unlike tuition reimbursement where companies pay you to go to school. In this scenario, you have already graduated and the companies will pay for your student loans as a perk for working for them. The amounts can vary depending on the company you are employed in, but graciously accept whatever they give because every little bit of help counts.
Use your Extra Cash Windfalls as Extra Payment
One of the best ways to completely eradicate this pesky student loan is to make more than the minimum payments. A few extra payments can go a really long way. This has a significant impact on your student loan balance as the principal is reduced.
To illustrate, you could have a student loan of twenty grand with a six percent interest and ten years left to pay the debt off. If you happen to make an extra payment of only one hundred dollars each year, you will be able to get out of student loan debt five months sooner. On top of that, you would have saved around$315 in interest alone.
Never take an extra windfall, like a bonus from an employer, a big tax refund, a winning small time lottery scratch ticket, or a sudden inheritance, for granted. All of these can help you handle and get rid of your student loan quickly if you just continue to make smart choices.
Refinance the Student Loan
Post graduation, you will most likely now have access to a steady income from your new job. Couple this fact with your good credit score, then you can consider refinancing your student loans. This means taking out a new loan with better terms, which will give you the funds to pay off the old loan.
People often opt to refinance to get better interest and better monthly payment schemes by shortening the time of the loan. This means, you can pay the loan off a lot faster and save more money on the loan interest.
It is important to remember that you have to work with a lender that does not charge origination fees. Exorbitant fees could actually cancel out your computed savings. Perform ample research before you sign any documents because making an informed choice is the smarter way to get things done.
Volunteer in a NonProfit Organization
Consider doing volunteer work for nonprofit organizations. Some of them provide student loan repayment assistance. They end up matching their volunteers who have vital and sought-after skills with their sponsors. These are the ones who fund the student loan repayment.
To qualify for this assistance program, it is very important that you adhere to their guidelines. Submit all the necessary paperwork in order to qualify for this repayment assistance. Giving back to the community just might surprise you into finding a charitable benefactor who will help you out.
Sign Up for an Auto Pay Program
Singing up for an automatic pay program with your lender and allowing them to make direct withdrawal from your bank every month to pay your loan can help you reduce it a bit. Because you are ensuring that you will not miss a payment, and you are exhibiting good faith that you will always pay on time, some lenders will actually offer you a payment discount just for registering into their monthly auto pay program. A 0.25 reduction is often given. It may not seem a lot, but a little goes a long way, so never underestimate the power of that numeric figure. It can change your life!